Sector News

Perrigo to Buy Omega Pharma for $4.5 Billion

November 6, 2014
Life sciences
Perrigo Co. PLC has agreed to buy Belgium-based Omega Pharma NV in a bid to expand its portfolio of over-the-counter drugs and broaden its market presence throughout Europe.
 
The companies said the deal was valued at 3.6 billion euros, or $4.5 billion, which includes 2.48 billion euros in equity and 1.1 billion euros in debt. About 25% of the equity price will be paid in Perrigo stock to Omega founder Marc Coucke, while the remaining 75% will be funded through a combination of cash and debt, they added.
 
Perrigo said it has secured a 1.75 billion-euro bridge loan from J.P. Morgan Chase Bank and Barclays.
 
Omega, the fifth-largest entity in the $30 billion European OTC market, made about $1.6 billion in revenue in the 12-month period ended Sept. 30, the companies said. It boasts a portfolio of about 2,000 products, including treatments for colds, pain and gastrointestinal problems.
 
Perrigo said it expects the deal to be immediately accretive to its adjusted per-share earnings, with double-digit accretion coming during its 2016 fiscal year.
 
The companies expect the acquisition to close in the first quarter of next year.
 
Also Thursday, Perrigo unveiled weaker-than-expected results for the most recent quarter.
 
For the period ended Sept. 27, the company posted $96.3 million in profit, or 72 cents a share, down from $111.4 million, or $1.18 a share. Excluding certain items, per-share earnings were $1.40.
 
Net sales rose about 2% to $951.5 million.
 
Analysts polled by Thomson Reuters had projected $1.44 a share in earnings and $998 million in revenue.
 
By Michael Calia
 

comments closed

Related News

January 29, 2023

Colorcon, Inc. signs Put agreement with intent to acquire controlled atmosphere packaging specialist Airnov Healthcare Packaging

Life sciences

Airnov provides critical healthcare industries with high-quality, controlled atmosphere packaging, to protect their products from moisture and oxygen. The business has manufacturing facilities in the USA, France, China and India and employs around 700 people.

January 29, 2023

Takeda pledges up to $1.13B for rights to Hutchmed’s cancer drug fruquintinib outside of China

Life sciences

Takeda of Japan has partnered with Hong Kong-based Hutchmed, gaining the commercial rights to colorectal cancer drug fruquintinib outside of China for $400 million up front, plus $730 million in potential milestone payments. Takeda also will help develop fruquintinib, which can be applied to subtypes of refractory metastatic colorectal cancer, regardless of biomarker status, the companies said.

January 29, 2023

Vir taps Bayer dealmaker Marianne De Backer as its next CEO

Life sciences

On April 3, Scangos, who’s been chief executive officer at Vir since the start of 2017, will hand over the reins to Marianne De Backer, Ph.D. De Backer comes over from Bayer, where she currently heads up pharmaceutical strategy, business development and licensing. Alongside her CEO appointment, De Backer is set to join Vir’s board of directors, the company said Wednesday.

How can we help you?

We're easy to reach